Santander’s U.S. Unit Fails Fed’s “Stress Test” For Second Year in a Row

Santander Holdings USA Inc., a unit of Spain’s Banco Santander SA, failed the Federal Reserve’s “stress test” for the second year in a row.

The result came not because of insufficient reserves of capital after suffering hypothetical losses, but because of weak internal procedures for managing through the stressed economic scenario, or so-called “qualitative” concerns, the Fed said.